Investment Situation Can Determine Need for Term, Whole Life Insurance

whole life insurance can be a better investment in certain cases, depending on one's investment situation, reports one financial columnist.

Writing in the Taunton Gazette in Massachusetts, John P. Napolitano says that such policies may require larger up-front investments, but have a cash accumulation value that can be especially helpful if an insurance holding period is expected to run for 30 years or longer.

Napolitano also notes that many whole life policies carry substantial penalties for withdrawal during a certain time period, and observes that cash accumulation tends to speed up more after the 15-year mark.

A recent personal finance column in the Arizona Republic suggested that such policies are especially useful to higher-income investors who have maxed out on deferring their income through taxes.

When it comes to investing in life insurance, there are a number of factors to consider, such as how much coverage is advisable and what type of policy to get. Knowing the difference between a term and a whole life insurance policy is an important place to start.

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